Five years ago, Shiba Inu (SHIB 0.23%) was arguably the hottest meme coin on the planet. But that’s certainly not the case today. Shiba Inu is down 93% from its all-time high in October 2021 and currently trades for the bargain price of just $0.000006.
That’s right — Shiba Inu is literally trading for as close to zero as you can possibly get. Right now, I wouldn’t touch Shiba Inu with a 10-foot pole. Here’s why.
Shiba Inu’s coin supply
The primary problem with Shiba Inu is its massive coin supply. Right now, it’s at 589 trillion. By way of comparison, the coin supplies of rival meme coins are usually measured in the hundreds of billions, not the hundreds of trillions.
Keep in mind that a big reason why Bitcoin is perceived to be so valuable is its relative scarcity. Only 21 million coins can ever be in circulation, and 20 million have already been created. Scarcity drives value in the crypto market, and right now, there’s nothing scarce at all about Shiba Inu.
Image source: Getty Images.
That’s really a shame, because developers in the Shiba Inu blockchain ecosystem have taken a number of important steps to burn coins in circulation. Everyone realizes that the coin supply is just too big.
But here’s the thing: Shiba Inu can’t burn coins fast enough. Even if the Shiba Inu blockchain ecosystem decided to burn 1 trillion coins every day for the remainder of 2026 (roughly 250 trillion coins), the total coin supply would still be a staggering 340 trillion.
Today’s Change
(0.86%) $0.00
Current Price
$0.10
Key Data Points
Market Cap
$15B
Day’s Range
$0.10 – $0.10
52wk Range
$0.08 – $0.30
Volume
1.6B
Compare that to the coin supply of Dogecoin (DOGE +0.86%), which is approximately 170 billion. Even after a massive, year-long coin-burning binge, Shiba Inu would still have a coin supply that is 2,000 times larger than that of Dogecoin!
Can Shiba Inu ever hit $1?
From my perspective, the math just doesn’t work. The large circulating coin supply will forever hold down the long-term value of the Shiba Inu token.
A quick mathematical calculation shows why. For example, if Shiba Inu traded for a price of $1, it would imply a market cap of $589 trillion. That’s roughly 400 times larger than the current market cap of Bitcoin. And does anyone really think Shiba Inu is 400 times more valuable than Bitcoin?
At the end of the day, I have no reason to believe that Shiba Inu will ever turn things around. If you’re going to roll the dice and invest in a meme coin, at least pick one that has a coin supply measured in the hundreds of billions, not the hundreds of trillions.
